(Reuters) -Canopy Growth Corp reported a smaller adjusted loss for the fourth quarter on Tuesday as the pot producer benefited from cost-cutting measures and a pandemic-driven jump in demand for weed products.
The company, which sells a range of products from dried flowers to gummies, chocolates and drinks mixed with weed, slashed total operating expenses by 73% in the quarter.
Its revenue surged 38% to C$148.4 million thanks to a rise in demand from customers using weed products for recreation and entertainment during lockdowns.
But the revenue figure missed a Refinitiv IBES estimate of C$151.8 million, hit by weakness in its international cannabis business that suffered from coronavirus-induced store closures.
The company is “a little concerned” that the restrictions, especially in Canada, will continue to impact its current-quarter performance, Chief Executive Officer David Klein told Reuters in an interview.
But Klein expects the situation to gradually improve, saying the company should be able to post quarter-over-quarter improvement in profitability throughout its fiscal year 2022.
Canopy also said it was on track to deliver savings of C$150 million to C$200 million within the next 18 months.
Klein said the company’s cost reduction had been “mostly implemented.”
The cost cuts helped in narrowing its adjusted loss before interest, taxation, depreciation and amortization to C$94 million ($78.02 million) in the three months to March 31, from a loss of C$102 million a year earlier.
The company said its focus is now firmly on the U.S. market where expectations are rising for federal marijuana reform after many states legalized its use.
($1 = 1.2044 Canadian dollars)
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